Pay-roll instrument.



J. E. HANZLIK.

PAY ROLL INSTRUMENT.

' APPLICATION FILED I=Iz.24. 19m. L25 89%@ Patented Mar. 12, 1918..

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JOHN E. HANZLIK, OF MADISON, WISCONSN.'

PAY-BOLL INSTRUMENT.

messen Application led February 24, 1914. Serial No. 820,433.

To all 'whom t may concern:

Be it known that I, JOHN E. HANZLIK, a citizen of the United States, residing at Madison, in the county of Dane and State of Wisconsin, have invented al certain new and useful Improvement in Pay-Roll Instruments, of which the following is a full, clear, concise, and exact description, reference being had to the accompanying drawings, forming a part of this specification.

My invention relates to negotiable interest bearing instruments of obligation, and more particularly to instruments of this class which may desirably be used in handling the payrolls of industrial and otherinstitutions. The instruments of my invenu tion in their preferred form comprise, rst, a negotiable bank certificate evidencing the deposit of a definite sum of money and agreeing to pay therefor one of a number of (preferably increasing) specific amounts, the proper one of which is determined by the date on whichA payment is made, the amounts and certain date indicia being strucf turally arranged (preferably alternately at one end of the certificate) so that certain dates and certain amounts reciprocally index each other inf-a manner that enables the holder to see at a glance without computation the proper amount that will be paid on any given date, as well as the exact period during which each of the specific amounts is payable; second, a bank check drawn upon a bank adapted to be signed by a depositor and, if desired, having similar arrangement of value and date indicia; third, a statement of account of the employee to whom the instrument is to be delivered; and, fourth, a receipt form, all of said sections being detachably secured to one another.

In the accompanying drawing I have illustrated one form of the instrument in which section A is the banks certificate of deposit. As will be apparent from the drawing, the bank certificate is provided with a space in which may be written or printed the name of the depositor, usually an employer, as for example, the Star Milling Company. When thus filled in, this savings certificate states that the Star Milling Company has deposited in the Manufacturers National Bank of Cityville, Illinois, the sum of ten dollars, for which it will pay the bearer (unless otherwise ordered) the proper amount shown in the tablefor the date presented.

The several value amounts are arranged in a table in such relative position to certain date indicia that the proper amount payable on any givenl date is seen at a glance. It is further provided with printed directions and an order associated with a blank signature space, the effectl of which is to make the instrument payable to order in- -stead of to bearer after receiving the signature of any owner in the space provided.' The instrumentas issued is thus readily transferred/from employer to employee and may thus pass from person to person by delivery until it falls into the hands of someone who, because of its appreciating value. may desire to keep it for a time, and that person is enabled by means of the order and signature space to make the instrument personal to himself. I

Preferably at the right end of the certificate a table is provided in which alternating with blank spaces ycertain predetermined successively increasing amounts are printed, as, for example, $10.00, $10.10, $10.20, $10.30, $10.40, etc. It is intended that the blank spaces in this table will be filled with appropriate date'indicia at the time the-certificate is issued, so as to indicate the precise periods of time during which each of the amounts provided in the table will represent the value of the instrument. Thus, if it is predetermined that the instrument shall have a value at the end of three months that would represent'interest at four per cent. per annum, the second space will be filled with a date three months later. than the first space, which'is also the date of the instrument. `If it is predetermined' that the instrument shail have a value at the end of seven months that will represent interest for the first3 three months at four per cent. and 'at three per cent. for the next four months, the third space will receive the date seven months after the date in the first space and four months after the date in the second space. In like manner, the other spaces may be filled in to give such rate or rates or combination of rates as may be desired.

Adjacent to the amount and date space table, is a series of braces or bracketsl so formed and arranged that each brac-e or bracketwill embrace one indicium of ,value and also the immediately adjacent date spaces. These braces or brackets thus define a series of period spaces such that each date space except the first will index two value amounts and each value amount except the L terminates; and second, it indicates the date upon which the period associated with the next succeeding amount begins.

This savings certificate will be signed by an oflicer of the bankand an appropriate space therefor is provided, as shown in the drawing.

Detachably vsecured to and thus madev a part of the interest bearing savings certificate of deposit is aform B, in which may be filled the data of a workmans time account with the Star Milling Company. Thus, Ythe form which T have' illustrated provides a space in which may be written the name of the employee. There are spaces in which may be filled the date of the commencement ofthe payrollfperiod andthe date of the end of the payroll period'. There is a blank 'in which may be filled thetotal number of hours of work and the rate per hour and the total amount of wages due the workman. There is a space also for deductions Which may be necessary as a result of partial payments on account, etc. There is a further space in which the balance due may be written, all as illustrated in section B of the accompanying drawing.

Detachably secured to the other sections of the Vinstrument is a section marked C. This is a pay check intended to be signed by an oiicer of the Star Milling Company. It directs the Manufacturers Bank to pay tothe. bearer the proper amount .shown in the table for theJ date presented.

The fourth section of the instrument comprises a detachable receipt form D. vThis form recites the fact that the `workman ac- -knowledges payment of hiswages in full to a date to be iilled in in an appropriate blank. As shown, thereceipt form is provided with a blank line in which the employee may sign hiswname upon the delivery of the instrument to him. Tt contains also, however, a space for the receipt of a finger print impression. This space may be sensitized so that the natural moisture of the hand will eect the necessary imprint or this space may be non-sensitized, in which case the space will receive a deposit of ink or rother pigment transferred from the fingers to the appropriate space upon the receipt form.

These instruments may belused in the following manner: By arrangement between the Star Milling Company and the Manufacturers9 -National Bank, the bank fur-l,

nishes the employer with these instruments,

which are in blank, except that savings certicates of deposit are signed by the ocer or ofiicers of the bank. The date of issue v meeste and the critical dates showing the beginning and ending dates of the several periods are also stamped in the spaces between the indicia of. value. These savings' certificates are issued and printed preferably in even amounts, as, for example, $1.00, $2.00, $5.00,

$10.00, $20.00, etc. The Star Milling Com;-

pany has an arrangement whereby it pays approximately forty per cent. of its wages in these savings certificates. The Star Mill- ,ing Company will advise the bank of the total amount and the denominations of the savings certificates which it will desireto issue in meeting its payroll upon a certain date, as, for example, July 18, 1913. Upon the 18th of July, 1913, the bank will charge its depositor, the Star Milling Company, with the total amount of the savings certicates issued to the Star Milling Company upon that date. y

The Star Milling Company will `fill in the statement of theaccount of a workman in the form B of each oftheinstruments. Tt will fill in the pay check with the amount of the dierence between the immediate value of savings certificate andthe total amount ofthe workmans wages. Fortinstance, supposing the workmans wages total $24.40, and the certificate issued has an.

check with the total of the principal and y interest at a rate or rates to be determined by the Star Milling Company at and between various dates in the future.

` The StarfMilling Company also ills in the necessary blanksv in the receipt form. When the pay clerk pays the workmen, he delivers each instrument to the proper worman.

John Smith, for example, is

handed the instrument which is illustratedl Iin, the drawing, whereupon' John Smith signs the receipt form or impresses or imprints his Bertillon signature upon the receipt form, as indicated in the drawing. Thepay clerk detachee the -receipt ferm and retains it as a record of the payment to John Smith. The statement of account is available to John Smith, who may ndthis statement of value in checking the correct` ness of the amount of `payment due him.

John Smith can immediately present the pay check to be cashed at the bank and the bank will cash this check if the Star Milling Company has on deposit the funds with which to meet the check. The pay check does not, however, represent the obligation of the bank except as it may have funds to the credit of the Star Milling Companl with which to meet the check. l lit is inten ed that the workman may hold this Apay check to be cashed at some future date, it he so' desires; lin so doing, however, he assumes 'Leeasea whatever risk there may be as to the continuing solvency of the StarMilling Company.

rl`he savings certificate, however, is an obligation of the bank and it may safely be assumed that the bank will be able to meet this obligation upon' demand. If l'John Smith is fearful lest he may lose the certificate of deposit, he may sign his name in the blank order space provided, after which the certificate becomes transferable by in dorsement only.

The sections .marked B, C and D in the drawing are preferably imprinted in large gures and in dull color, with figures indicative of the amount of the principal represented by the savings certlficate attached thereto.

These instruments Aof my invention are highly useful in -handling large ,payrolls By use of the finger print receipt form, the work of distributing the pa checks and procuring acknowledgments o receipt therefor can be handled very rapidly. Since the principal amount represented by the pay? roll check bears interest, there is an encouragement to the workmen to delay cashing it, and, to the extent that the cashing of these checks is delayed, the Star Milling Company maintains its resources of cash until the predetermined date marked upon the instrument which determines when the issued certicates are to be charged 4against itX by the bank. r1`he combination of the statement of account with the other sections of the instrument provides a convenient means of checking the correctness of the accounting, both from the standpoint of the workman and from the standpoint of theemployer. The issue of the interest bearing savings certificates increases the banks savings deposits by the amount of the savings certificates issued, and to the extentlthat the workmen to whom these certicates are issued or those to whom the .workmen transfer them delay in presenting the certificates for payment, the bank wil build u the amount of its savings deposits. ASince tiiese certificates of deposit are readily negotiable, they may pass from one person to another for many months or years before being presented to the bank for payment. While, of course, the bank must meet the payment, not for principal only, but of one ofthe larger amounts specified in the table, if the same has been held long enough,

v.the amount payable at any time will be such that the bank will have held and used `the principal amount of the fund at a profit to itself. Further, the combinations of value ,indicia and date indicia, mutually indexing one another, are such as to eliminate the computation of time or interest by the paying teller; thus conserving his time and the money involved in errors. Y

period, and thus greatly stimulate thrift onthe part of thousands of employees who otherwise would not think of saving their money. means of thrift education as well as automatic deposit convassers.

Finally, the use of the certificates enables the depositary to readily adjust the compensation for the use of the depositors money on a basis that represents different rates for different periods and aEords the owner a return for the use of his money more equitably adjusted to the earning power of money as affected by seasonal or other customary changes in demand for money. Thus the certificate shown in the drawing indicates that the depositor will receive as much for his money during a period of three months during the late summer and early fall as he would receive for it for four months durin the klate fall and early winter, indicating tc-he depositary recognizes the higher earning power of money in that community during the late summer land fall than during the .late fall and early IThe certificates thus become the' winter. The general use .of my certificates desire to secure tion embodying value indicia representing 4 progressively' increasing predetermined fixed amounts-each representing the value of the certificate during one of the consecutive periods or intervals and date spaces associated with the value indicia and so positioned relative to the value indicia that each of the date spaces but one indexes two of the value indicia and that each of the value indicia but one indexes two of the date spaces, of a bank check form detachably secured to the said certificate, the bank check form being imprinted with the amount of the principal represented by the said certificate of obligation.

2. 1n an instrument of the class described, the combination with a certicate of obliga. tion embodying' value indicia representing progressively increasing predetermined ffxied ciated with the value indicia and so positioned relative to the value indicia that each of the date spaces but one indexes two of the value indicia and that each of the value indicia but one indexes two of the date spaces, of a bank check form detachably secured to the said certiicate, and a statement form detachably secured to the said check form and the said certificate of obligation, the bank check form and the statement form being imprinted with the amount of the principal represented by the said certiicate of obligation.

3. ln an instrument of the class described, the combination with a certificate of obligation embodying value indicia representing progressively increasing predetermined iXed amounts each representing the value of the certificate during one ofthe consecutivev periods or intervals and date spaces associated with the value indicia' and so positioned relative to thevalue indicia that each of thedate spaces but one indexes two of the value indicia and that each of the value indicia but one indexes two of the date spaces, of a bank check form detachably secured to the said certificate, a statement form detachably secured to the said check form and the said certicate of obligation, and a receipt form detachably secured to the said check form, statement form and certificate of obligation.

4. ln an instrument of the class described,

the combination'with a certificate of obligation embodying value indicia representing.

progressively increasing predetermined fixed amounts each representing the value of thel certificate during one of the consecutive periodsy or intervals and date spaces associated with the value indicia and so positioned relative to the value indicia that each of the date spaces but onev indexes two of the value indicia and that-each of the value indicia but one indexes two of the date spaces,

. form detachably secured to the said check of a bank check form detachably secured-to the said certificate, a statement form detachably secured tothe said check form and the said certificate of obligation, and a receipt form, statement form and certiicate of obli- 'gation, the said bank check form and receipt form being imprinted with the amount of the principal represented by the said certicate. of obligation.,v 'Y

5. lln an instrument of the class described,

. the combination with a certicate of obligalet tion embodying value indicia-representing progressively increasing predetermined ed amounts eachrepresenting the value of the certieate during one bf the consecutivev naeaeea form and receipt form being imprinted with V the amount of the principal represented by the said certificate of obligation. v

6. ln an instrument of the class described, the combination with a certicate of obligation embodying value indicia representing progressively increasing predetermined fixed amounts each representing the valueof the certiicate during one of the consecutive periods or intervals 'and date spaces associated with the value indiciav and so posi- Itioned relative to the value indicia that each ofthe, date spaces but one indexes two of the value indicia and that each of the value indicia but one Yindexes two of the date spaces, of av bank check'form detachably secured to the said certificate; and a receipt form detachably secured to the said certifi-v cate.

7. lin an instrument of the class described, the combination with a certicate of obligation embodying value indicia. representing progressively increasing predetermined fixed amounts'eachrepresentingthevalueofthe'certiicate during one of the consecutive periods or intervals and date spaces associated with the value indicia and so positioned relative to the value indicia that eacb of the date spaces but one indexes two of the value indicia and that each of the value indicia but one indexes two of the date spaces, of a bank check form detachably secured to the said certificate, and a receipt form detachably secured to the said certiicate, the said receipt form being provided' with a space designated for the reception of a lnger imprint of identication.

8. lin an instrument of the class described, the combination with a certificate-of obligation embodying 'value indicia representingprogressively increasing predetermined xed amounts each representing the value` or the certiiicates during one oit the consecutive periodsor intervals and date spaces associatedl with the value indicia and so positioned relative to the value indicia that each ci the date spacesbut one indexes two of the value indicia and that each of the value indicia but one indexes two of the date spaces, of a bank check form detachably secured to the said certificate, 4and a receipt form detachably secured tothe said certificate, the said check form and the said receipt form being l imprinted with ythe aunt ont the princi- Massese pal represented by the said certicate of obligation.

9. ln an instrument of the class described, the combination with a certificate of obligation, of a bank check detachably secured to the said certificate, both the certificate of obligation and the bank check being provided with value indicia representing propressively increasing predetermined Xed amounts each representing the value of the certificates during one of the consecutive periods or intervals and date spaces asso# ciated with each of the sets of value indicia, and each set of date spaces being so positioned relative to the associated set of value indicia that each of the date spaces but one of each set indexes two of the associated value indicia and that each of the value indicia but one of each set indexes two of the associated date spaces. l

10. ln an instrument of the class described, the combination with a certificate of obligation, of a bank check detachably secured to the said certificate, both the certificate of obligation and the bank check being `provided with value indicia representing p-rogressively increasing predetermined xed amounts each representlng the value of the certificate during one of the consecutive periods or intervals and date spaces associated with each of the Sets of value indicia, and each set of date spaces being so positioned relative to the associated set of value indicia that each of the date spaces but one of each set indexes two ofthe associated value indicia and that each of the value indicia but one of each set indexes two of the associated date spaces, and the said bank check being imprinted with the amount of the principal represented by the said certificate of obligation.

In witness whereof, I hereunto subscribe my name this 19th day of February, A. D.

` JHN E. HANZLIK. Witnesses:

L. H. HANZLIK, 

